Last week, Michigan’s top business, political, and civic leaders convened for the 2025 Detroit Regional Chamber Policy Conference on Mackinac Island. The annual event sets the tone for statewide priorities, partnerships, and the political mood ahead of a major election year. The theme — “Rebuilding Trust: Civility, Solutions, and Shared Responsibility” — framed virtually every panel, fireside chat, and hallway conversation. With deepening polarization nationwide, Michigan leaders focused on collaboration to resolve challenges from workforce development and public health to education, infrastructure, and clean energy.

Gov. Gretchen Whitmer focused on Michigan’s economic momentum, pointing to large-scale manufacturing investments, record-low unemployment, and bipartisan efforts to fund talent pipelines. She also acknowledged declining student outcomes, housing shortages, and the urgent need for more mental health and childcare infrastructure. Karoub Associates clients were well represented in breakout sessions about the state’s talent shortages, future of higher education, and K-12 assessments’ role in long-term economic competitiveness.

Legislative leaders remain committed to finalizing the state’s FY 2025–26 budget before the statutory deadline of July 1, but negotiations are moving cautiously. While Michigan’s fiscal outlook is relatively stable, according to the May 2025 Consensus Revenue Estimating Conference (CREC), slower growth and long-term pressures are shaping budget negotiations. This month’s CREC shows the state's primary revenue sources — sales tax, income tax, and business taxes —are holding steady, but no longer surging. Analysts from the Department of Treasury, House Fiscal Agency, and Senate Fiscal Agency project modest revenue declines in the FY 2025-26 General Fund and School Aid Fund compared to prior estimates. Karoub Associates continues to engage on behalf of our clients, ensuring key priorities—from K-12 programs and post-secondary access to infrastructure and local government support — remain visible and viable in this final stretch.

Through bipartisan action, Michigan will expand affordable housing with the recent passage of House Bills 5030–5032. The changes are designed to make it easier for first-time home buyers and low-income residents to access safe, affordable housing.

Click here for the full details in the June 2025 Karoub Report.